Bitcoin rose violently during the Lunar New Year, and the emergence of the ERC-404 protocol changed the entire NFT ecosystem? (This week’s highlights 10/2–16/2)
Highlights of the week
- Bitcoin surges to $52,000 during Chinese New Year, breaking multiple resistances
- The emergence of ERC-404 protocol drives a new NFT interactive experience
Bitcoin surges to $52,000 during Chinese New Year, breaking multiple resistances
During the Lunar New Year, Bitcoin performed well and successfully broke through multiple resistances. It has now exceeded US$52,000, bringing investors the most eye-catching red envelopes and generous returns in the New Year. It is worth noting that Ethereum also followed the upward trend during this period, with the highest price even reaching $2,800. The entire cryptocurrency market showed a steady upward trend during the New Year, bringing joy to investors.
However, we need to delve deeper into what’s going on in the market right now, with a specific focus on where Bitcoin currently stands. The $51,000 to $52,000 range is seen as a potential resistance area.
As can be observed from the weekly chart, Bitcoin is currently sitting near the overhead resistance at $51,941. We will need to keep an eye on whether Bitcoin can break through this resistance and remain stable above it. If Bitcoin can develop according to the expected trajectory and stand firm at the resistance support of $51,941, then it may be just around the corner to welcome Bitcoin to $60,000, because the chip area above is relatively small. Once this strong resistance level is broken, it may open higher Quotes.
However, if Bitcoin fails to break above the overhead resistance area, it may bottom out at $48,000, test support, and then consolidate in the $48,000 to $51,941 range. It is expected that the good news of Bitcoin halving will once again catalyze the market and challenge the resistance of $51,941 again.
Based on the many good news in 2024 (Bitcoin halving, interest rate cuts, US election), I personally believe that Bitcoin is expected to continue its upward trend, not only breaking through the previous high of US$69,000, but also possibly entering the 6-digit Bitcoin price range.
Ethereum ERC-404 protocol launched, leading a new NFT interactive experience
The emergence of Ethereum’s latest protocol ERC-404 has brought a new NFT experience to Web3 users. This protocol combines two protocols, ERC-20 and ERC-721, to solve the problem of insufficient NFT liquidity. Pandora, the project leading this protocol, has been hotly discussed in the past two weeks, attracting numerous user participation. Currently, the floor price of NFT launched by Pandora has reached 7.5 ETH.
After an in-depth understanding of how ERC-404 works, I believe that this protocol brings new possibilities to NFT interactive experiences and has a positive impact on the entire ecosystem. During the last bull market cycle, NFT once became a hot topic, but after the bull market ended, its liquidity and discussion dropped sharply. I think one of the reasons is that the price of existing NFTs is too high, which puts many users away. Although some sub-projects try to attract more participants (like Azuki’s Elementals and Beams, or Pudgy Penguins ’ Lil Pudgys ), they have significant functional and membership differences from the main project, leaving users in a dilemma whether to buy or not. Awkward position. Moreover, the high prices of related main projects have also led to liquidity problems.
The emergence of ERC-404 effectively solved the problem of insufficient liquidity of NFT. In the future, users only need to continue to purchase relevant tokens, and after accumulating a certain amount, they can exchange them for NFTs. This mechanic is similar to how you collect fragments to obtain items in the game. In addition, users can also dismantle the NFT into pieces and resell them to others. To sum up, I believe that the emergence of ERC-404 will promote the liquidity of the NFT market and inject new vitality into it.
In addition, ERC-404 also creates a win-win situation for users and project parties. In the past, users could only resell unwanted NFTs in the second-hand market, but now they can get a new experience by “reswiping” NFTs, and even increase their chances of obtaining rare NFTs. Project parties can also gain more benefits from it and enhance the interactivity and growth of NFT.
However, it should be noted that ERC-404, as a new technology and protocol, has not yet undergone sufficient practical testing and multiple code audits. Therefore, caution is required when interacting with it.
It is often said in the crypto that all bull markets need to be driven by certain narratives at the beginning, such as DeFi, GameFi and NFT. Perhaps this time the ERC-404 protocol is the trigger that drives the bull market to explode.
